Asha, Bram and Celia form a partnership with no written or implied agreement on profit sharing. They contributed capital of £60,000, £30,000 and £10,000 respectively. This year's profit is £45,000. Under the Partnership Act 1890, how much profit is Asha entitled to?

Correct answer: D) £15,000

Explanation

In the absence of contrary agreement, s24(1) provides that partners share equally in capital and profits, however much capital each contributed. Asha's share is therefore £45,000 ÷ 3 = £15,000. £27,000 wrongly allocates profit by capital (60/100 × £45,000). The other figures have no basis in the default rules.